The term refers to an introduction or educational guide to the different types of trading in financial markets. Here is a simplified explanation of the most important types of trading that new traders become familiar with:
🧠 Trading Types 101
1. Day Trading
🔁 Opening and closing trades within the same day.
⏱ Relies on short-term price movements.
⚠️ Requires close monitoring of the market.
2. Swing Trading
⏳ Trades last from days to weeks.
🧭 Relies on technical analysis and trend study.
✅ Suitable for those who cannot monitor continuously.
3. Scalping
⚡️ Opening and closing trades within minutes or seconds.
🎯 Targets small and frequent profits.
🖥 Requires high execution speed and real-time monitoring.
4. Position Trading
📅 Holding trades for months or years.
📊 Relies more on fundamental analysis.
👔 Similar to investing, but with more flexibility.
5. Algorithmic Trading
🤖 Using robots or algorithms to execute trades.
⚙️ Relies on predetermined rules and conditions.
🧪 Suitable for advanced traders and programmers.
6. News Trading
📰 Relies on exploiting economic events or data.